Question

Which consideration must be addressed when deciding for whom to produce

Answer 1

The solution for this issue is quite simple commodity can be easily consumed by the people who has increased purchasing power.

Price mechanism will determine the workers income i.e purchasing power. However, the purchasing power of capital owner is evaluated in similar way.

When decision is made on what to produce, the manufacturer must target a specific set of individual or population of economy who seems to be users of product which he likes to produce.